Will you trade on a Government owned Centralized Exchange?

[Amug123]

First on the table, I don't see this possibility coming into reality in my lifetime as it is normal for any government not to have anything to do with cryptocurrency as a participant in doing business and I know that if the government is going to be involved it would just be a big mess. Now, in a scenario where there is ONLY ONE exchange operating and allowed to do business with cryptocurrency in my country and the government is giving all people the guarantee of safety and a refund in case of a hack then maybe I would reconsider my stand from NO to YES. The thing is there is more of a probability of that scenario happening in Mars than on Earth so maybe we should pressure Elon Musk to focus more on terraforming the red planet so we can be the first inhabitants to populate that planet. 

I understand your doubts about government involvement in cryptocurrency  is understandable.  The idea of a single government controlled exchange seems unlikely, and concern about potential mismanagement  or over regulation are valid. But when consider the  scenario of government backed exchange with robust security guarantees and refunds policies might change your stance. But the likelyhood of scenario unfolding seems remote.

[Alone055]

If there is no force, or other exchange services aren't banned or made inaccessible, I think I would stick with the ones I'm using right now, such as Binance, Bitget, and OKX. The reason is pretty simple, I have been using those exchanges for years, and have never faced any issues till this date, whether it's about trading, deposits and withdrawals, P2P trades, or anything in general, I have always been satisfied with the services even though they are centralized and I have provided them with my personal documents.

That being said, if the government launches its own exchange and then bans or blocks our access to other platforms only so that we use their exchange, in that case, I might or might not use it. If I feel that it is the easiest way to get things done and the user experience is good, which means there are no problems users facing or any other issues, I might use it, but if I can still find some other alternative, I might go for that instead.

[target]

My government does have an exchange where they supported, it feels like they are watching over us already. I have been keeping myself aware of the surveillance that China is doing to their people. And I know it done by every government as well which can be scary at times because they would know your financial capability when they see you are trading on stocks and crypto.

When I learn that my government was backing one centralized crypto exchange, I knew would never try using it.

[Roseline492]

First of all I will need to no the kind of government I have, if it was a government that ones hated cryptocurrency for long and later realized they need to accept cryptocurrency, I will not leave the exchange I'm using for the one established by the government because is better doing your cryptocurrency holding or trading were it doesn't concerns the country you live in because what if something happen in the government and they just cease all the money everybody has on their various account since they are the owners of the exchange.

[Stompix]

2. If the government bans, and blocks citizens access to other exchanges except the country's own exchange, will you forcefully use the exchange or will you find alternative means of accessing other global exchanges?

Is the punishment for not using it a trip to the firing squad at the stadium? Then everyone will be using it, and whoever says he will still avoid is just lying to themselves and to others, trying to pose as something. The moment you'll be faced with capital punishment, you will be remembering what you ate twenty days ago in the first day when it rained in March, not even close to using or not using an exchange.

I will not be forced into using an only government exchange.

Lol, yeah, nice hearing that from behind the keyboard.
I've lived under a dictatorship, where people were afraid to even talk bad about the government because you could endup dead in prison, once the police gets you and you get beaten, have your nails pulled with a plier and left naked with no food for a few weeks in a cell do you think you won't beg them to take all your coins and just let you go?

[sampoerna]

It depends on the conditions.
Maybe yes, maybe not.
Because this is about business, when there is no compulsion to use the exchange, I would consider if:
- The transaction rate is at least the same as other CEXs, or even much cheaper
- Ease of transactions and buying and selling
- Ease and more affordable costs for withdrawing to a bank account
- Not complicated

Because for now, I myself also use one of the local CEXs in my country, which is of course subject to government regulations. so maybe the regulations will not be much different, and even the same.

[Cryptsafe]

The government of my country has never been sincere when it comes to cryptocurrency usage and dealings so putting up such laws seems fishy because we would not know what they are up to as it is that in the past they have clamped done on crypto enthusiast, seizing accounts and many things done just to frustrate crypto currency trading in the country so they coming up with any policy of a national crypto exchange would look obvious because they would be up to something and if not compulsory, I would not dare use it as they can not be trusted.

[Zed0X]

It doesn't matter if they ban or allow exchanges registered outside the jurisdiction. I mean I don't see the difference between government owned and government regulated exchanges. The main question here should still be would you entrust most of your money on this type of exchanges.

[SamReomo]

2. If the government bans, and blocks citizens access to other exchanges except the country's own exchange, will you forcefully use the exchange or will you find alternative means of accessing other global exchanges?

Well, in that case I will find an alternative mean to access global exchanges but I don't think that in place where I live, there's going to be any such forceful actions for the citizens to go for government owned exchange instead of the global ones.

However, in case if such thing takes place in future then I'll most probably choose alternative way and there's chance that I might also use government owner exchange as that's still a safe option I guess.

[joniboini]

If the government forces people to use their exchange and kills every competition out there, I'd rather find options on the P2P market or something else. The track record of my government with data security or financial security is horrible, so if they do that I don't trust them that if shits hit the fan they'd be better than Bybit, Binance, etc. Heck, they'll likely be worse. I doubt they'd go as far as jailing people because they trade Bitcoin through P2P channels unless we go full dictatorial leadership in the future, so that's that.

[Themepen]

If the government forces people to use their exchange and kills every competition out there, I'd rather find options on the P2P market or something else. The track record of my government with data security or financial security is horrible, so if they do that I don't trust them that if shits hit the fan they'd be better than Bybit, Binance, etc. Heck, they'll likely be worse. I doubt they'd go as far as jailing people because they trade Bitcoin through P2P channels unless we go full dictatorial leadership in the future, so that's that.

That is strong and easy to understand position about government forcing people to use their own crypto trading platforms. Government is at keeping data and money safe are valid and that is big reason to be careful about this kind of thing. Comparing government potential exchange to well known international ones like Bybit and Binance and not trusting that government would handle things well if something bad happened makes a lot of sense.

Your preference for using P2P market or other ways to trade is good and with this we can control our money especially because we do not trust government. Point about it probably is unlikely for people to go to jail for trading Bitcoin through P2P channels unless country becomes full dictatorship in future. Cryptocurrency is spread out and not controlled by one place there are other options even if government tries to control things.

[densuj]

I Will trade on a government centralize exchange but it is just for convert crypto into fiat money and paying little tax because in coming future DEX is killing CEX or at least DEX is better than CEX. Because of Dex i got passive income in crypto weekly, will be better the government makes their own DEX too.

It is new something new technology related with blockchain it is the future of trading platform. So for trading activity i will use DEX than CEX.

[Bobcrypto]

For me government are politicians, anything that comes from politicians are not always reliable at all. I must say that there are limited trust by the people on government efforts in handling their economy.
I doubt if I will ever trade on a government own crypto exchanges because, if many of them could not manage their respective economy properly, they will certainly be unable to manage a crypto exchanges, whether Cex or Dex.

[Trongduy]

First of all I will need to no the kind of government I have, if it was a government that ones hated cryptocurrency for long and later realized they need to accept cryptocurrency, I will not leave the exchange I'm using for the one established by the government because is better doing your cryptocurrency holding or trading were it doesn't concerns the country you live in because what if something happen in the government and they just cease all the money everybody has on their various account since they are the owners of the exchange.

We can totally sit tight and see what services users are actually digging and whether the costs are reasonable. If the government considers crypto securities, then the fees will be super cheap, just like current stock trading fees. On the flip side, if these CEXs are just trying to stick around to tick a few investor boxes while making tax collection easier, then investors might want to eyeball some international CEXs for better liquidity and services.

Personally, I'll be chilling on the sidelines and keep using international CEXs before I even think about touching the ones under national management. I don't have a ton of faith and high hopes for governments that are stuck in their ways and don't really get the basics of crypto. Using their CEXs could come with a whole bunch of risks, you know?

[Fivestar4everMVP]

For me government are politicians, anything that comes from politicians are not always reliable at all. I must say that there are limited trust by the people on government efforts in handling their economy.
I doubt if I will ever trade on a government own crypto exchanges because, if many of them could not manage their respective economy properly, they will certainly be unable to manage a crypto exchanges, whether Cex or Dex.

Well, you are absolutely right, but for me, If I wasn't going to use a government owned exchange, it's possibly not going to be based on the fact I think they can't managed the exchange properly, because I think if governments can manage central banks properly because they know there where all the money they loot comes from, they can also manage their own exchanges properly because they are going be generating billions in dollars annually from that exchange if only the citizens will trust them enough to use the exchange.

The reason why I won't  be using the exchange is solely based on privacy, government will definitely be monitoring everyone account and transactions, I won't like to be one of their victims.